Cloud storage refers to a model of computer data storage in which digital data is stored in logical pools, said to be on "the cloud." The physical storage spans multiple servers (sometimes in multiple locations), and the physical environment is typically owned and managed by a hosting company. These cloud storage providers are responsible for keeping the data available and accessible, as well as the physical environment protected and running. People and organisations buy or lease storage capacity from the providers to store user, organisation, or application data.

In the context of Digital Asset Management (DAM), cloud storage offers a scalable and flexible solution for storing vast amounts of digital assets such as images, videos, documents, and other media files. This is particularly beneficial for organisations that need to manage large libraries of digital content, as it allows for easy access and sharing of assets across different teams and locations. Cloud storage also supports collaboration by enabling multiple users to access and work on the same files simultaneously, which is crucial for maintaining workflow efficiency in a DAM system.

One of the key advantages of cloud storage in a DAM system is its ability to provide robust data backup and disaster recovery solutions. Since the data is stored off-site and often replicated across multiple data centres, it is protected against localised hardware failures, natural disasters, and other potential data loss scenarios. This ensures that digital assets are not only securely stored but also readily recoverable in the event of an emergency, thereby safeguarding the organisation's valuable digital content.

Moreover, cloud storage integrates seamlessly with various DAM software platforms, offering features such as automated metadata tagging, advanced search capabilities, and version control. These integrations enhance the overall functionality of the DAM system, making it easier for users to organise, find, and manage their digital assets. As a result, cloud storage is an essential component of modern Digital Asset Management, providing the infrastructure needed to support the growing demands of digital content management and distribution.